Limited Liability Company (SRL)
Sociedad de Responsabilidad Limitada
Company formation in Costa Rica
The SRL is best suited for: Small businesses and startups with fewer than 25 partners, Foreign founders seeking a straightforward Costa Rican entity, Tech companies establishing US-adjacent Latin American presence, Service businesses with a limited number of owners. Costa Rica operates a territorial tax system — only Costa Rican-source income is subject to tax. Foreign-source income is exempt from Costa Rican corporate tax. Standard corporate tax is 30% for companies with gross income above CRC 112 million (~$200,000). Lower rates apply to smaller income brackets: 5% up to CRC 5.7 million, 10% up to CRC 8.6 million, 15% up to CRC 11.5 million, and 20% up to CRC 112 million. VAT (IVA) is 13% standard. Withholding tax on dividends to non-residents is 15%. Free Trade Zone companies enjoy 100% income tax exemption for 8 years, then 50% for an additional 4 years.
- Small businesses and startups with fewer than 25 partners
- Foreign founders seeking a straightforward Costa Rican entity
- Tech companies establishing US-adjacent Latin American presence
- Service businesses with a limited number of owners
Key Facts
Step-by-Step Formation Process
Prepare the articles of incorporation
Draft the articles of incorporation (escritura de constitución) with a Costa Rican notary public. The document must include the company name, purpose, capital structure, partner details, and management provisions. All SRL formations must be executed before a notary.
Register with the National Registry
The notary files the incorporation deed with the Registro Nacional (National Registry). The registry reviews and publishes the company in the official gazette (La Gaceta). Once published, the company receives its legal entity number (cédula jurídica).
Register with the tax authority
Register the company with the Dirección General de Tributación (DGT) to obtain a tax identification number. Register for income tax, VAT (IVA), and any applicable withholding tax obligations. This can be done online through the ATV (Administración Tributaria Virtual) portal.
Register with social security (CCSS)
If hiring employees, register as an employer with the Caja Costarricense de Seguro Social (CCSS). Employer contributions are approximately 26% of payroll. This is mandatory before employing any staff.
Open a corporate bank account
Apply at a Costa Rican bank such as BAC Credomatic, Banco Nacional, or Scotiabank Costa Rica. Bring the company registration extract, cédula jurídica, director identification, and proof of business activity. In-person presence is typically required for account opening.
Required Documents
- Passport or national ID of all partners and managers
- Articles of incorporation executed before a Costa Rican notary
- Proof of registered office address in Costa Rica
- Power of attorney (if registering through a representative)
- AML/KYC documentation for banking
Cost Overview
Tax Treatment
Costa Rica operates a territorial tax system — only Costa Rican-source income is subject to tax. Foreign-source income is exempt from Costa Rican corporate tax. Standard corporate tax is 30% for companies with gross income above CRC 112 million (~$200,000). Lower rates apply to smaller income brackets: 5% up to CRC 5.7 million, 10% up to CRC 8.6 million, 15% up to CRC 11.5 million, and 20% up to CRC 112 million. VAT (IVA) is 13% standard. Withholding tax on dividends to non-residents is 15%. Free Trade Zone companies enjoy 100% income tax exemption for 8 years, then 50% for an additional 4 years.
Pros & Cons
- Central America's most stable democracy with strong rule of law
- Free Trade Zones (ZFEs) offer up to 100% tax exemption for 8 years
- US timezone alignment (CST) makes it ideal for US-facing operations
- High English proficiency among educated workforce
- OECD member — adds credibility for international business
- 100% foreign ownership permitted with no restrictions
- CAFTA-DR provides preferential access to US, Central American, and Dominican Republic markets
- Standard 30% corporate tax rate is among the highest in Latin America
- Relatively small domestic market (~5 million people)
- Notary requirement adds cost and complexity to formation
- Banking onboarding for foreign-owned companies can be slow
- Territorial tax system requires careful structuring to benefit
- Labour costs are higher than most Central American neighbours
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.